Can we process a 2 year old QDRO?

[ERISA-Bubs]

We received a DRO from July 2020 back in 2020.  The order was clear, but contained some very odd terms, so we reached out to the parties to verify our interpretation.  We just heard back from them this week that our interpretation of the order is correct.  The DRO could be considered a QDRO, but can we process it now that its two years old?  I know there is the 18 month rule, but that appears to be more of a deadline for the administrator to process the Order, not a limit on how old the order can be.  

Can we process the Order?

Is there a limit as to how old an order can be and still be determined a QDRO and processed accordingly?

[Peter Gulia]

If the plan is ERISA-governed, an order does not fail to be a DRO or a QDRO (as ERISA § 206(d)(3) defines those terms) because of when the court made the order.

(An order might fail to be a QDRO based on how what the order would provide relates to facts and circumstances that might have changed since the court made the order.)

If the plan is a governmental plan, a church plan (that did not elect to be ERISA-governed), or otherwise not ERISA-governed, read the plan’s governing documents. Some plans of those kinds set detailed conditions for an order the plan recognizes, and those conditions might be stricter than ERISA § 206(d)(3) and Internal Revenue Code § 414(p).

[ERISA-Bubs]

Thanks Peter!